Vandover, Impact business grows with relocation rise

As the corporate world becomes more global, the number of employees being asked to take assignments in other states, or other countries, is rising.

And for corporate relocation firms that pride themselves on making the employee's transition smoother, that movement translates into bigger business.

A recent survey conducted by Atlas World Group Inc. of Evansville, Ind., indicated that corporate relocations are continuing their upward trend, and nearly 65 percent of surveyed companies outsourced relocation services in 2004, especially when it came to real estate.

Local firms such as Vandover Inc. and The IMPACT Group are benefiting.

"We definitely have seen an increase, and things are looking up," said Denise Hall, vice president of marketing for Vandover. "Our business has been tracking up about 34 percent from January to March this year versus last year."

Vandover provides employment/career assistance to employees who are displaced as a result of reorganizations, mergers or acquisitions, or spouses of employees who are seeking employment as a result of relocation.

"Two of the hardest things to find are doctors and hairdressers," Hall said. "Medical providers are another area where we do a lot of legwork for people."

Lauren Herring, director of international development at IMPACT Group, said her firm is entering its busy season and has increased hiring to handle the anticipated increase.

"We had a great year in 2004, when growth was about 46 percent over 2003," she said. "We're projecting similar growth this year."

IMPACT, based in St. Louis, has opened three international offices in Europe and Asia over the past few years, and expects to be in three additional markets by the end of this year.

Part of the reason for the industry increase is that corporations are sweetening the pot for employees they ask to move.

"Companies are realizing that to be family friendly and remain competitive, they have to offer more lifestyle and settling-in services when they transfer employees," Hall said. "About three-fourths of the new companies we work with are writing the lifestyle and settling-in piece into their policies, and it's highly utilized.

"September 11 also has meant a shift from everything the company wants to benefits that more employees want," she said.

Herring said two-income families need reassurance that the company will help spouses find new positions when they move.

"Families are not as inclined to move if the spouse cannot find a position," she said. "They figure they're making a large sacrifice for the greater good of the company, so they want to know what the company can do to support them in return."

IMPACT Group assigns career and family consultants to clients to help them manage the tensions and frustrations of organizing the move and getting back on track in a new locale.

"Even single people have to re-establish their lifestyles, and it can be tough if they don't have an accompanying spouse to get things settled," Herring said.

According to a report by the Employee Relocation Council, a Pennsylvania company that tracks employee mobility issues, trends and best practices in the United States and globally, new hires represent an unfolding area of relocation growth.

The number of new hires being transferred across the country was expected to jump more than 20 percent in 2004.

Hall said she anticipates that the corporate relocation business will continue to expand. The company recorded an 83 percent volume increase between 2003 and 2004 and expanded the number of employees in the St. Louis office over the past three years, she said.

"More than 70 percent of companies now provide some kind of assistance to relocate employees," she said. "Five years ago, it was less than 50 percent."